Home buyers insurance

The basics of home buyers insurance

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What is home buyers insurance?

Home buyers insurance offers cover if your house purchase falls through.

It allows you to claim back some upfront costs, such as valuation, mortgage and conveyancing fees (up to certain limits).

Home buyer insurance is a specialist standalone policy. It’s not part of a standard home insurance policy.

Sorry – you can’t compare home buyer insurance at Compare the Market.

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Do I need insurance when buying a house?

Not legally. But there are various types of cover that might be useful.

For example, home buyers insurance – sometimes known as home buyer protection insurance – could help if the moving process were to fall through.

You’re not required by law to have buildings or contents home insurance either. But mortgage lenders may insist you have buildings cover in place at the point of exchanging contracts.

What does home buyers protection cover?

What could be covered

  • Gazumping – when the seller agrees to a higher offer from another buyer after initially accepting your offer. Some policies only cover this if the new offer is higher than yours by a set amount

  • Chain collapse – if one of the links in your house sale chain collapses, and you’re unable to continue with your move

  • Down valuation – if your mortgage lender’s valuation is less than the price you’ve agreed to pay for the property, they may lend you less money or refuse to give you a mortgage at all

  • The seller backing out – they may simply change their minds and decide not to sell

  • A bad survey report – if the survey reveals a major problem, resulting in the purchase collapsing

  • The purchase falls through - you could claim back fees for your conveyancing, survey and valuations, mortgage lender, mortgage broker, gazumping insurance premiums, and accommodation and storage costs

You're not typically covered if...

  • The property valuation is more than 90% of the accepted offer (the percentage may vary among insurance providers)

  • The sale fell through because of delays you caused, or you changed your mind

  • You didn’t instruct a solicitor

  • You’re able to get a refund on your fees

  • You take voluntary redundancy

  • You knew about the problem before you bought the policy 

  • You bought the policy too late – for example, after your survey was carried out 

  • The sale involved a contract race or sealed bids.

Did you know?

Around one in three house sales fall through, and failed sales cost sellers around £400 million a year, according to the Ministry of Housing, Communities and Local Government. 

When should I buy home buyers insurance?

If you want home buyers protection, it’s worth arranging it soon after your offer is accepted. Some policies must be bought before you have a survey, or within a certain time after instructing your solicitor or applying for your mortgage. 

Check the policy terms before you go ahead, as time limits and cover can vary. You won't normally be covered for a problem that had already happened, or that you already knew about, when you bought the policy. 

Is home buyers protection insurance worth it?

Whether home buyer protection insurance is worth it may depend on your personal circumstances and how much risk you’re comfortable with taking on.

Home buyer insurance can be particularly helpful when the market is very competitive and there’s a risk your purchase could fall through.

While home buyer insurance can’t erase the disappointment of losing out on your dream home, it could help mitigate any financial losses.

People looking to buy house

What other insurance should I consider when buying a property?

When buying a property, you’ll want to consider home insurance. It can help cover the cost of repairing or rebuilding your home or replacing its contents if they are damaged or destroyed.

It provides cover against a number of risks including fire, flooding, burst pipes and theft.

There are two main types of home insurance to consider: buildings insurance and contents insurance.

Buildings insurance

Buildings insurance covers the bricks and mortar of your home, along with any permanent fixtures and fittings like kitchens and bathrooms.

You’ll need enough buildings insurance to cover the cost of rebuilding your house from scratch. The rebuild value isn’t the same as the market value of the property, though – it’s usually less.

Building costs can change, so make sure you’re insured for the right amount. When you get a quote with us, we can help you work out the rebuild value of your home.

Read more about buildings insurance

Contents insurance

Contents insurance will cover your possessions once you’re in your new home. It usually includes furniture, home appliances, clothes and carpets.

If you’re moving to a bigger property and end up buying new stuff, you may have to increase the level of contents cover.

If you’re downsizing and taking fewer possessions with you, you might find that you need less insurance when you add up the value of your contents.

Read more about contents insurance

Goods in transit insurance

You’ll want to protect your possessions when they’re being moved to your new home. If you already have contents insurance, check whether your policy includes home removals cover.

Some home insurance policies include moving home cover as standard. But they might only cover you if you use a professional removal company. If your policy doesn’t include any kind of removal cover, you may be able to add it for an extra cost.

It’s also worth checking what cover your possessions will have if you’re putting them in storage.

What insurance will I need if I have a mortgage?

If you have a mortgage, you might want to consider insurance that can cover your repayments if you’re unable to make them.

Mortgage protection insurance

Life insurance

  • Life cover can be used to clear any debts, including your mortgage, when you’re no longer around. Your mortgage provider may insist you have life insurance in place as a condition of its mortgage offer.

    Life insurance could cost you less than £4.74 a month1.

    Compare life insurance

What home insurance add-ons can I get?

You might want to consider:

Just remember that add-ons typically increase the cost of your premium.

How much does home insurance cost?

The cost of home insurance is determined by a number of factors. With buildings insurance, factors include how much your house would cost to rebuild and your postcode.

With contents insurance, the value of your possessions and where you live are also taken into consideration. In both cases, whether you’ve made claims in the past will likely be taken into account.

House icon

Buildings insurance could cost less than £174 per year3

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Contents insurance could cost less than £59 per year4

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Combined buildings and contents insurance could cost less than £193 per year5

When do I need to have home insurance in place?

Your buildings insurance usually needs to be in place from the day you exchange contracts in England and Wales. This is usually the point at which the property becomes your responsibility, even though you won’t own it until completion. 

If you already own a property, you might need insurance for both new and old properties if there’s a transitional period when you’re responsible for both.

You may want to update and transfer your existing home insurance policy to your new home. But moving could also be an opportunity to compare home insurance quotes with us and find a better deal.

Bear in mind...

If you change your insurance provider part-way through your policy, you may be charged a cancellation fee.

But it’s still worth getting quotes to see whether any saving you’d make from switching providers makes paying the fee worthwhile.

Houses with for sale signs
Helen Phipps

What our expert says...

“Whether home buyers insurance is worth it depends on your circumstances, but it’s worth considering if the market is competitive. It could help you claim back some costs, such as valuations, surveys and solicitor fees, if gazumping, a chain collapse or a down valuation stops your purchase."

Helen Phipps, Insurance expert

What do I need to get a quote?

You can’t compare home buyer protection insurance through Compare the Market. But it’s easy to get a home insurance quote with us. You’ll just need to:

  • Give us some details about your new home, including when it was built

  • Tell us its rebuild value (we have a rebuild calculator to help you with this)

  • Choose the level of cover you need.

If you already have home insurance, it could be helpful to have your current policy documents handy.

Compare home insurance

Help with buying a home

We're here to help with your house move, with advice on everything from viewings to completion

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We explain why you'll need buildings cover before you move in
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Questions to ask when viewing a house
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Home improvements vs moving house
Discover whether improving your home could be more savvy than moving
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First-time buyer home insurance
Find out which types of insurance you'll need for your first home
All home insurance guides

FAQs

How much is home buyers insurance?

Prices typically start at around £70-£80 for a basic home buyer protection policy. This could go up to a couple of hundred pounds for the most comprehensive cover.

You can't compare home buyers insurance with Compare the Market.

Do I have to buy home insurance through my mortgage provider?

No, your mortgage provider might suggest you take out their own buildings insurance, but you don’t have to. You can choose any home insurance provider – and it’s worth shopping around to get the most suitable deal.

However, mortgage lenders may require you to have buildings insurance as a condition of their mortgage offer. So, you may need to show your lender you have a policy in place.

How much buildings insurance do I need?

The amount of buildings insurance you’ll need depends on the rebuild value of your property. This is how much it would cost to rebuild your home, not its market value.

Do I need home insurance when buying a leasehold property?

You probably won’t need buildings insurance when buying a leasehold property. The freeholder is usually responsible for this, and you’ll contribute towards the cost through a service charge. But check the terms of your lease to be sure.

The freeholder won’t be responsible for contents insurance, so you’ll need to get this if you want cover for your possessions.

Is it worth getting contents insurance when buying a home?

It certainly can be. Without contents insurance, you’ll have to pay to replace your possessions if they’re damaged, lost or stolen.

Should I get combined buildings and contents insurance?

It can often work out cheaper to get buildings and contents insurance in one policy rather than take out separate ones. You could pay less than £1936 per year for combined buildings and contents cover, versus £59 for contents only7 cover and £1748 for buildings only cover.

It can also be more convenient if you need to make a claim.

But you should always compare quotes to make sure combined cover is the right option for you.

Can I transfer my existing home policy?

Yes, you can transfer your home insurance. But your premiums may go up or down depending on the property you move to.

Do I need buildings insurance for a new-build home?

Yes, you’ll need buildings insurance for a new-build home. Although some newly-built properties come with a warranty, you’ll still want to cover yours against the risk of flooding, fire, water leaks and subsidence.

Do I need buildings insurance if I’m buying a house without a mortgage?

You’re not obliged to take out buildings insurance if you’re buying a property outright. But it could protect you from potentially huge costs if your house is damaged or even destroyed: for example, by a fire.

When might I need specialist home insurance?

You’ll typically need specialist home insurance for a non-standard property. For example, if you’re buying a Grade II-listed house or a cottage with a thatched roof.

Can I get gazumping insurance?

Yes, gazumping insurance is just another name for home buyer protection insurance or home buyers insurance.

Is home buyers insurance the same as buildings insurance?

No – home buyers protection is designed for the buying process, while buildings insurance covers the property itself.  

Home buyers insurance can help cover some of the costs you’ve already paid if your home purchase falls through for a reason covered by your policy. 

Buildings insurance covers the structure of your home against damage from things such as fire and flooding. It can also cover permanent fixtures, including fitted kitchens and bathrooms. 

Is home buyers protection insurance regulated?

Yes. It’s an insurance product, so the firm selling it should be authorised by the Financial Conduct Authority (FCA), or be an appointed representative of a firm that is. You can check on the FCA Register. 

If you complain and aren’t happy with the firm’s response, you can usually take it to the Financial Ombudsman Service. 

Do I need home buyers protection if I’m not in a chain?

It could still be useful. Even without a chain, your purchase could fall through if the seller pulls out, your survey finds a problem, or your mortgage valuation comes in low. 

Whether it’s worth it depends on your own appetite for risk, and how much you’d stand to lose if the sale fell through. 

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Helen Phipps
Reviewed 26 Oct 2026 byHelen PhippsInsurance expert

Helen’s our resident home insurance expert, as the former Head of Home Insurance at Compare the Market. She's also experienced with car insurance and pet insurance from her previous roles across commercial, partnerships and as a freelance consultant, working with more than 100 insurers across a variety of insurance products.

Methodology

1 51% of our under 30-year-old, non-smoker customers were quoted less than £4.74 per month for their 10-year decreasing term life insurance policy, up to £175k worth of cover, no critical illness cover in September 2026.

2 Correct as of September 2026.

3 51% of our customers were quoted less than £173.11 for their buildings home insurance in September 2026.

4 51% of our customers were quoted less than £58.56 for their contents home insurance in September 2026.

5 51% of our customers were quoted less than £192.99 for their buildings and contents home insurance in September 2026.

6 51% of our customers were quoted less than £192.99 for their buildings and contents home insurance in September 2026.

7 51% of our customers were quoted less than £58.56 for their contents home insurance in September 2026.

8 51% of our customers were quoted less than £173.11 for their buildings home insurance in September 2026.